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The uncertain moral context of price changes

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  • Freitas, Luiz
  • Wagner, Jeffrey

Abstract

The purpose of this paper is to motivate a microeconomic model of consumption in which there is uncertainty that is not resolved ex post regarding the moral context of price changes. We show that neoclassical microeconomic theory can yield a result in which expected utility falls when a consumer who is sufficiently concerned for the uncertain moral context of production is faced with a falling price.

Suggested Citation

  • Freitas, Luiz & Wagner, Jeffrey, 2009. "The uncertain moral context of price changes," Ecological Economics, Elsevier, vol. 68(4), pages 1100-1105, February.
    • Handle: RePEc:eee:ecolec:v:68:y:2009:i:4:p:1100-1105
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